NewJersey Resources Corporation (NJR)

Debt-to-capital ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	—	2,587,840	2,362,840	2,102,840	2,102,840
Total stockholders’ equity	US$ in thousands	2,200,440	1,990,740	1,817,210	1,630,860	1,643,900
Debt-to-capital ratio		0.00	0.57	0.57	0.56	0.56

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,200,440K)
= 0.00

The debt-to-capital ratio of NewJersey Resources Corporation has shown stability over the past five years. As of September 30, 2024, the company reported a debt-to-capital ratio of 0.00, indicating that the company had zero debt in relation to its capital. This is a significant improvement from the previous year, where the ratio was 0.57.

The decrease in the debt-to-capital ratio suggests that the company has either reduced its debt levels or increased its capital base, or a combination of both. A lower debt-to-capital ratio is generally considered favorable as it indicates lower financial leverage and lower risk associated with debt.

Overall, the trend of decreasing debt-to-capital ratio over the past five years reflects positively on NewJersey Resources Corporation's financial health and prudent management of its capital structure.